Conferma has issued the research demonstrating that the average large US business is paying over USD1 million in managing their corporate expenses. Research for the Virtual Card Numbers providers, carried out by Opinion Matters, has revealed that the multiple inefficiencies in how big US business manage expenses is proving a significant hit on their bottom lines.
In the US there are in excess of 30,000 businesses with more than 500 employees, with an average annual cost of expenses management of USD1.075.000 per business. Conferma shows that the total cost reaches USD32.9 billion.
With the surveyed businesses having an average of 328 staff authorised to make purchases, managing these multiple expenses streams is proving expensive in terms of both time and money. 66% of Chief Financial Officers believe that current processes are too time consuming and 58% believe they are too costly.
Moreover, 90% of Chief Financial Officers admit that it is difficult to reconcile payments on cards used by multiple members of staff.
One way in which management costs could be tackled is throughuse of technology and automation. When it comes to addressing these problems, 90% of the Chief Financial Officers surveyed point to employees being able to make purchases on mobile devices as a possible solution. As further indication of the willingness of business to explore new technology to reduce cost and drive efficiencies, 40% of Chief Financial Officers identified them as being able to help solve the concerns they had over expenses management. This rises to 49% of Chief Financial Officers working in the financial services industries.
The research for Conferma was carried out by Opinion Matters. The sample size was 250 Chief Financial Officers in company sizes of 500+ in the US.
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